Rising childcare fees should be redirected away from parents

THE cost of childcare remains a big expense for one in three families, research by The Australia Institute confirmed on Wednesday.

A study by the think tank showed each time government sought to reduce the cost of childcare; the savings were quickly absorbed by higher service fees.

Report author David Baker said both major political parties should redirect child care rebates to care centres to address rising fees, rather than to parents to pay for the fees.

Households reporting cost difficulties in 2010 were on average paying 9.6% of their total household income on childcare fees.